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The chip, released last year, was built using a 0.13-micron manufacturing process to make it smaller and less power-hungry than chips built using the older 0.18-micron process. Hardware makers such as Dell, Hewlett-Packard and Compaq would release servers based on the chip over the next few weeks, said an Intel spokesman.
The processor is typically used in servers that are packed tightly in a rack and handle such tasks as e-mail, caching, and serving up Web pages.
The Pentium III at 1.4GHz features 512Kbytes of L2 cache and costs $315 (£218) per 1,000 units.
Intel also introduced the Server Board SDS2, Server Board SAI2 and Server Chassis SC5100 - all of which are compatible with the Pentium III server chip.
The Server Board SDS2 supports up to two Pentium IIIs and includes six PCI slots, dual Ethernet controllers and dual-channel Ultra160 SCSI storage. The Server Board SAI2 also includes support for two Pentium IIIs and comes with a single Ethernet controller and six PCI slots.
The Server Chassis SC5100 supports two server boards with the Pentium III processors in either rack or pedestal configurations. In addition, users will find support for redundant power supplies and for either five IDE hard drives or ten Ultra160 SCSI hard drives.